Archives Transaction Terms

Tenancy In Common – Business Broker terms! Get a Free Value Assessment

When the Tampa business owners decided to expand their operations, they opted for a tenancy in common arrangement for their new warehouse property, allowing each of the three partners to hold an undivided interest in the property. This setup meant that each partner could individually decide to sell or bequeath their share, and upon their passing, their interest would descend to their designated heirs, ensuring continuity and flexibility in their business operations.

Survival Period – Business Broker Terms

In a business broker-supported deal in Tampa, FL, the contract specified a survival period of 12 months post-closing, during which all representations and warranties made by the seller had to remain true, and the seller was responsible for indemnifying the buyer against any breaches discovered and reported within this timeframe.

Subordination – Business Broker Terms – Free Consult

In the business broker deal involving a Tampa-based manufacturing company, the seller agreed to the subordination of an existing lien on one of the company's key assets, making it junior to the new financing secured by the buyer to facilitate a smoother acquisition process.

Sublease – Business Broker Terms – Free Consult

In the transaction facilitated by the business broker, the buyer of the Tampa restaurant wanted flexibility in managing the property, so they negotiated a sublease agreement with the original lessee. This arrangement allowed the new owner to become the lessor and sublease part of the space to a coffee shop, with the property owner's approval secured in writing to ensure compliance and transparency.

Synergy – Business Broker Terms

In a business broker-facilitated merger between two Tampa-based technology firms, the post-acquisition synergy was evident as the combined entity achieved significantly higher profitability than either firm had individually, thanks to streamlined operations and merged technological resources enhancing overall performance.

Structure (Transaction Type) – Business Broker Terms – Free Consult

In the acquisition where the Tampa business broker was transactional per real estate law, the structure of the transaction was carefully planned: the target company opted to sell its assets to the buyer, who paid primarily in cash. This method facilitated a straightforward transfer of value, ensuring clarity and efficiency in the completion of the sale.

Stock Sale – Business Broker Terms

In a deal facilitated by a Tampa business broker in Tampa, the transaction was structured as a stock sale, where the buyer acquired all the shares of a local manufacturing firm. This approach meant that the buyer assumed control of the corporation in its entirety, along with all its assets and liabilities, without any step-up in basis in the underlying assets, maintaining the corporation's historical tax basis.

Statute Of Frauds -Business Broker Terms – Free Consult

In a business sale managed by a Tampa business broker, the transaction included a long-term lease agreement. Due to the Statute of Frauds, which mandates that leases of real property for more than one year must be in writing to be enforceable, the broker ensured that all lease documents were properly drafted and signed, securing a legally binding agreement between the parties.

Sole Proprietorship – Business Broker Terms – Free Consult

In a transaction facilitated by a business broker in Tampa, the sale involved a sole proprietorship, a popular local construction owned by a married couple. As the business was not incorporated, the broker emphasized to potential buyers that the owners were personally liable for all business debts, which was an important consideration in the negotiation and valuation process.

Single-Party Listing – Business Broker Terms – Free Consult

In Boca Raton, a Business Broker often faces the situation where a listing agreement with a seller is about to expire without a sale. The broker typically informs the seller, "Hey, our listing terminated, and we no longer have the right to show or advertise it as for sale, so good luck." Ideally, this prompts the seller to appreciate the broker's honest approach and professionalism, leading them to respond, "Wait a minute, I like the way you operate, let's keep going." At this point, the broker can convert the agreement into an "Exclusive Listing," ensuring a continued partnership aimed at successfully selling the property.

Simple Interest – Business Broker terms! Free Value Assessment

In a financial discussion facilitated by a business broker, the broker explained the concept of simple interest to a buyer considering a loan to purchase a business in Lakeland, Florida. She clarified that with simple interest, the interest charges would be calculated on the principal amount only, unlike compound interest where interest is also calculated on the accumulated interest, potentially making the loan more manageable in terms of repayment.